Remedy for the Partnership Firm from refusing permission by the Nationalized Bank for opening current account
Selvam Perumal
(Querist) 30 January 2009
This query is : Resolved
Dear Sir,
I require a kind clarification on the following issue:
A registered partnership firm dealing with “finance business” of mobilizing deposits from the general public and lending loans to the needed persons.
Now this partnership firm requires opening a current account in the nationalized bank for the purpose of depositing and clearance of Cheques being issued by the Courts in the execution proceedings.
But the Bank drag on the matter thereby hesitating to accord permission to open the current account by orally citing the following flimsy reasons:
(a) since the Bank and the said partnership firm have been dealing with same parallel business of “finance” as such the Bank is hesitating to accord sanction for opening the current account in the name of the partnership firm; and
(b) questioning the partnership firm that why not at the time of incorporation of the partnership firm itself a current account not opened;
Now my bonafide doubts are is there any provision of law which permits that nationalized banks to refuse to accord sanction to the partnership firm which deals with parallel business of the bank from opening current account in the name of the partnership firm?
Kindly clarify these issues with relevant provision of law and if possible with relevant citations, please.
A. A. JOSE
(Expert) 31 January 2009
The Bank's contentions are untenable and unfair. You may either approach the Banking Ombudsman or the Consumer Forum, with your complaint please.
sanjeev murthy desai
(Expert) 31 January 2009
Dear Selvam. P
I Agree with A. A. Jose and You can ask and get a endorsment from the Bank why they resusing then you can file a compliant.
sanjeev desai
Rajesh Kumar
(Expert) 31 January 2009
Seek this information under RTI and send complaint to Reserve Bank of India and banking ombudsman.
Selvam Perumal
(Querist) 31 January 2009
Dear Sirs,
I am very much grateful to all of the EXPERTS above named for kindly submitting your valuable suggestions on this issue. I will follow the same procedures as you laid down above.
Thanks for all.
M. PIRAVI PERUMAL
(Expert) 31 January 2009
What Mr. Rajesh said is absolutely correct.
Selvam Perumal
(Querist) 05 February 2009
Dear Sir,
As you stated above, there are TWO options for prosecuting the Bank namely: (1) filing Complaint before Banking Ombudsman; or (2) filing case before Consumer Forum. If so, which remedy is prompt and purposeful?
Banking Ombudsman Scheme 2002 at: http://www.thehindu.com/thehindu/biz/2004/11/08/stories/2004110800621500.htm
Banking Ombudsman Scheme, 2006 at: http://www.indian-bank.com/BankingOmbudsmanScheme2006AsAmended.htm
Since these Two Ombudsman Scheme (namely 2002 and 2006 Schemes) doesn’t speaks about Refusal of Bank from Opening Current Account is a ground for Complaint before the Banking Ombudsman.
Under these circumstances a Complaint before the Consumer Forum is possible, if so, kindly give me any citations in this regard, please.
Thanks and regards,
P.SELVAM,
05-02-2009
PALNITKAR V.V.
(Expert) 05 February 2009
I would like to differ in one aspect. How the partnership can be called a consumer unless it has bank account. The firm is yet to become a consumer.Can any one clarify this.
M. PIRAVI PERUMAL
(Expert) 05 February 2009
You first lodge your complaint with the Ombudsman. Let him reply. The decision of Ombudsman is not final and binding on you. If you are aggrieved with the reply from the Ombudsman you can very well knock the doors of DCDRF for redressal of your grievance.
